Customers “voting with their feet” as discounters continue to grow market share

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According to the latest figures from Kantar Worldpanel, grocery market sales grew 3.2 per cent for the 12 weeks to October 7 compared to the same period a year prior.

Although this marks the fourth consecutive period that sales grew ahead of the market average of 1.7 per cent, it represented a slowdown from the highs enjoyed over the hot summer.

Once again Aldi saw the most significant growth over the period, seeing sales rise 15.1 per cent marking its fastest level of growth since the start of the year.

Total Till Roll – Consumer Spend 12 weeks to
8 October 2017
Share 12 weeks to
7 October 2018
Share Change
£M %* £M %* %
Total Grocers 25,443 100.0 26,262 100.0 3.2%
Total Multiples 24,975 98.2 25,811 98.3 3.3%
Tesco 7,120 28.0 7,186 27.4 0.9%
Sainsbury’s 4,022 15.8 4,046 15.4 0.6%
Asda 3,932 15.5 4,027 15.3 2.4%
Morrisons 2,631 10.3 2,694 10.3 2.4%
Aldi 1,742 6.8 2,004 7.6 15.1%
Co-op 1,575 6.2 1,685 6.4 7.0%
Lidl 1,332 5.2 1,464 5.6 10.0%
Waitrose 1,357 5.3 1,359 5.2 0.1%
Iceland 530 2.1 555 2.1 4.8%
Ocado 288 1.1 309 1.2 7.5%
Other Multiples 446 1.8 480 1.8 7.8%
Symbols & Independents 468 1.8 451 1.7 -3.7%

 

This was aided by strong growth in both its store estate and its premium range sales, which were the highest of any UK supermarket accounting for six per cent of total revenues, leading to market share growth of 0.8 per cent.

Commenting on the results Aldi’s UK chief executive Giles Hurley said: “The huge demand for Aldi across the UK gives us the confidence to continue investing in our business and that’s why we’ve extended our store opening plan to hit 1,200 stores by the end of 2025.”

Its German counterpart Lidl also saw customers “voting with their feet” as footfall rose five per cent, alongside double-digit sales growth of 10 per cent and an average spend boost of 55p per trip, the most of any grocer.

Co-op also performed well over the period posting a sales rise of seven per cent thanks to a strong performance in its own-label ranges.

Co-op, Aldi and Lidl were the only physical grocers to increase their market share during the period, rising 0.2 per cent, 0.8 per cent and 0.4 per cent respectively.

Within the Big 4, Tesco and Sainsbury’s sales edged up 0.9 per cent and 0.6 per cent respectively, while smaller rivals Asda and Morrisons both grew 2.4 per cent.

Kantar’s head of retail and consumer insight Fraser McKevitt says that Tesco’s attempt to stem its falling market share had not yet been successful.

“Despite widespread interest in the September launch of its discounter concept, Jack’s, the small number of stores planned means it won’t impact on Tesco’s market share without a significant expansion,” he said.

Meanwhile Waitrose posted lacklustre sales growth of 0.1 per cent while its market share dipped slightly by 0.1 per cent.

Online grocer Ocado continued its steady growth, seeing sales jump 7.5 per cent and its market share increase 0.1 per cent.

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